You can only receive what you ask for.
Strong negotiation skills are essential to your professional development. They help you confidently ask for a raise, negotiate your starting salary, and run a successful business.
Depending on your current negotiation skills, you might leverage one tactic over another. If you’re great at reading body language, you might mirror the listener’s nonverbal cues to build empathy and camaraderie. And if you excel at research, you might bring persuasive facts to the table.
But understanding how several popular negotiation tactics work means you can practice the skills you're not as proficient in and successfully address every unique negotiating circumstance.
What are negotiation tactics?
Whether discussing the salary range for a new position or renegotiating your salary for a role you’ve held for years, knowing how to communicate your financial needs confidently is vital. Strong negotiation tactics help you do just that. You can use these methods to persuade your employer to accept your request.
Learning about and practicing several negotiation techniques means you can stand up for what you think is fair. If you feel undercompensated or undervalued, express this convincingly to gain what you deserve. This self-advocacy is one of the best ways to advance your career.
7 effective negotiation strategies and tactics
An effective negotiation process involves communicating well and listening actively to others’ concerns to reach a mutual decision that benefits both parties.
Here’s a list of the best negotiation tactics you can use to create a powerful business negotiation strategy.
1. Stay open-minded
Entering a negotiation wanting to receive what you ask for is normal. But a key component of a successful negotiation is compromise. Everyone wants to leave feeling like it was a win-win outcome. Going into the negotiation knowing there will be trade-offs allows you to stay flexible and make strong counteroffers accordingly.
If your employer says a raise isn’t possible, this flexible mindset means you’ll consider other alternatives, like increased benefits or paid time off (PTO), to up your compensation. This way, you don’t walk away empty-handed.
2. Listen actively
You’ll likely enter a negotiation knowing precisely what you want to say — but you must also pivot depending on the information they offer. Listen well to catch key details you can use advantageously. They might suggest something they can budge on, which you can then expand on to gain something from the meeting.
In a salary negotiation, for example, your boss might say something like, “We don’t have the budget for a raise right now but are trying to implement more professional development opportunities.” You can jump on this information to ask for a wellness stipend or career coach instead.
Active listening also involves showing the other person you care about their perspective and understand what they’re trying to say. Expressing this level of care might make them more amenable to compromise. You can do this by nodding along, leaning in, and paraphrasing their words.
3. Frame the negotiation
Make sure the listener knows precisely why you’re having this negotiation. If they can’t prepare for the talk, they might postpone it or not provide the information you need to make your request or compromise. This also allows them to enter the negotiation feeling more relaxed and well-prepared.
Frame your objective in a way that benefits everyone so the negotiation doesn’t feel hostile. If you want a raise, discuss how much value you bring to the company and how much more you can provide if your compensation improves.
4. Make the first offer
Making the first offer allows you to determine the size of the playing field. If you want a salary of $80,000, requesting $100,000 gives you room to negotiate. But if you start at $80,000, you likely won’t receive more than $80,000, and the final offer could fall short.
This tactic leverages the listener’s anchoring bias: the first information they hear anchors their impression of upcoming relevant information. When you state that you deserve $100,000, they’ve already anchored your value around there and won’t go as low as if you’d anchored your value at $80,000.
5. Rank your priorities
Before going into the negotiation, rank what you hope to get out of it. This will help you pivot on the spot if you notice your listener won’t budge on one of your requests. When your priorities are clear, you can guide the negotiation in a way that satisfies more of your higher-valued conditions.
This also means you can “sacrifice” lower-valued terms, which might persuade your employer to approve conditions you value more. When you forfeit something you want, your employer might want to provide you with some wins to even the playing field.
6. Use evidence
Convince the listener of your argument with specific data they can’t misunderstand or dispute. If asking for a raise, use quantitative data to showcase your accomplishments thus far with the company, like KPIs you’ve reached within tight timeframes or revenue you’ve brought in.
To use this tactic most effectively, understand the data type your listener values the most. Some people prefer to see benchmarks, while others need real-time projections. And compile the data concisely to ensure the listener can easily interpret the information and make an educated decision.
7. Accommodate their decision-making style
When entering a professional negotiation, you’re almost always dealing with the decision-maker regarding the issue. And these leaders often have unique decision-making styles you can leverage to sway them. Harvard Business Review outlines five leadership decision styles:
- Charismatics seem immediately accommodating but actually require hard data to make a decision
- Thinkers work through an issue slowly, often needing time to think after the meeting to make a choice
- Skeptics are wary from the start and typically decide based on their gut feeling
- Followers accommodate other leadership opinions on the matter
- Controllers focus on the facts, not letting personal feelings or interests sway their choice
If you’re speaking with someone new, use the first few minutes to ask questions and chat to see if you can pinpoint and leverage their decision-making style. And if you’re chatting with someone you know well, like a direct manager, brainstorm before the meeting to determine their style and alter your negotiation strategy to it.
3 real-life negotiation scenarios
Negotiation tactics are transferable to numerous workplace situations. Here are three real-life scenarios with negotiation tips.
1. Paying less for supplies
A great example of negotiating price as a buyer regards dealing with suppliers. Many vendors will negotiate pricing, especially if you purchase in bulk or over a long time period.
If you want to pay less for supplies, try using the tactic of compiling evidence to convince them they’re charging you too much. Say a competitor offers a better deal. You can bring this information to your supplier and ask them to match prices.
Remember to frame the conversation right away and convince them with hard data. You might say the following:
“I’ve noticed [competitor’s name] offers their customers [package and price]. I’m currently paying [rate you pay] for the same package with your company. I want to continue working with you and I’m hoping you can match that rate for me.”
This shows them you’re willing to move your business elsewhere if they can’t price match.
2. Gaining a more flexible work schedule
A recent McKinsey survey found that when offered work flexibility, 87% of Americans accept. This might mean they can work from home or remotely or that they can adjust their hours to work when they’re most productive. Either way, Americans want workplace flexibility.
If you want to negotiate more flexibility, you’ll likely do so with your direct manager. Try to pinpoint their decision-making persona (charismatist, thinker, follower, skeptic, controller) and adjust your strategy to this style. You’ll provide more data for a thinker and ask for their decision post-meeting, and you might encourage your manager to discuss the issue with other leadership employees if they’re a controller.
3. Obtaining commuter benefits
Transportation costs are a common pain point for commuting employees. If you can’t achieve a hybrid arrangement and must commute, negotiating transportation benefits can alleviate the stress associated with high costs.
You could ask your employer for a subsidized transit fare, fuel reimbursements, or compensation for purchasing a bicycle. Mention that it’s a win-win situation for all, since these perks also decrease your employer’s taxes.
Stand up for what you want
Whether you’re starting a new job or looking to improve the conditions of your current position, being well-versed in negotiation tactics increases your chance of obtaining the work-life balance you deserve. Confidently communicating your needs lets you take hold of your career trajectory and reach your goals.
Start by doing your research regarding what you want and how you might persuade your listener. This involves compiling industry data and learning more about your listener’s decision-making style. Then, confidently ask for what you think is fair, and take these self-advocacy skills into every area of your life to enjoy well-rounded growth.
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